Step-by-Step Guide to Novation & MLS Success

We will deconstruct the step-by-step process, from the initial seller conversation to the critical legal framework and the go-to-market plan. Pay attention. The details are what separate a $10k assignment fee from a $50k+ profit margin.

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PHASE 1: SECURING THE DEAL

Your initial conversation with the seller must follow a disciplined, proven path. Don't deviate.

Strong Introduction: Establish credibility and control from the first sentence.

The Four Pillars: Execute your core value-building conversation script. (Note: The Four Pillars are a foundational component of the full sales process).

Get to a Price: Your entire goal is to get the seller to agree on a number. Once you have that agreement, the entire dynamic of the deal shifts. This price is your anchor.

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PHASE 2: THE PIVOT — SETTING NOVATION EXPECTATIONS

This is the moment of truth. Once a price is agreed upon, you are no longer just a wholesaler. You are a problem solver with a clear process. You must immediately and confidently set the following three expectations. This is non-negotiable.

Access: "Mr./Mrs. Seller, to get this done, we will need clear access to the property. We will always provide you with 24-48 hours' notice before anyone from our network needs to walk through."

Timeline: Establish a realistic timeline for inspections, marketing, and closing.

Marketing Authorization: This is the engine of the entire strategy. You need to secure the seller's permission to market the property. Frame it professionally:

"Our process includes a pre-marketing clause which allows us to begin generating interest immediately."

"This is part of our corporate internal marketing process that ensures we can secure the highest and best outcome."

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PHASE 3: NAVIGATING SELLER OBJECTIONS

If the seller pushes back on any of your expectations (access, timeline, marketing), don't panic. This is a predictable fork in the road. You have three strategic moves:

Options

Options

Option A: Re-Negotiate Price.

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Option B: Stand Firm.

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Option C: Pivot to a Standard Wholesale.

Column 2

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PHASE 4: THE LEGAL TOOLKIT — YOUR RIGHT TO LIST

To execute this strategy, you need more than a standard purchase agreement. Your paperwork is your power.

The Workaround Document: Your key to the MLS is a Power of Attorney (POA) or an Affidavit of Interest in Fact (AIF), depending on state law.

Purpose: This document grants you, the investor, the legal authority to act on the owner's behalf to facilitate the sale.

Why It's Critical: Many MLS boards prohibit listing a property when you only have "equitable interest" (i.e., a standard purchase contract).

The POA/AIF is the legal workaround that grants you the authority to list the property without being the titled owner. It’s the widget that makes this entire machine run.

The Full Document Stack:

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Template copy A-B Contract (Novation) TEMPLATE.docx

12.5 kB

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Purchase and Sale Agreement: The foundation of the deal.

Power of Attorney (POA) / AIF: Your license to list and manage the sale on the MLS.

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PHASE 5: GO-TO-MARKET STRATEGY — DOMINATING THE MLS

Once the paperwork is signed, your focus shifts to disposition. The retail market is unforgiving of sloppy presentation.

The Unbreakable Rule: Invest in professional photos.

Do not use cheap, blurry, poorly lit photos from your phone. Retail buyers make snap judgments based on images. Your photos are 90% of the battle.

The Success Trifecta:

Price: You secured your price in Phase 1.

Pictures: High-quality, professional photos.

Location: The one thing you can't change.

There are no rows in this table

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Remember, 99% of buyers will see your pictures on Zillow, Redfin, or Realtor.com before they ever decide to schedule a visit. Bad pictures will kill a good deal.

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CRITICAL COMMUNICATION: THE ART OF VERBAL DISCLOSURE

What you say is as important as what's in the contract. To avoid seller confusion, distrust, or deals blowing up at the last minute, you must verbally disclose the process with precision.

The Script: When explaining property access, use this exact phrasing:

"Just so we're on the same page, our network includes retail investment associates accompanied by retail agents. We will always give you 24 to 48 hours' notice before they arrive."

The Translation: This is a professional way of saying "buyers and their agents."

Why It's Mandatory: You are verbally setting the expectation that the people coming through the house are not just your partners, but retail buyers.

This prevents the seller from feeling deceived or getting angry when a licensed real estate agent shows up with a family looking for their next home.

By disclosing it upfront, you eliminate their ability to say, "I didn't know this was happening," and kill the deal.

This isn't about hiding the ball; it's about professional communication to facilitate a smooth, profitable transaction.

Struggling to find consistent deals? Prexium connects you with the opportunities you’ve been missing. Get started now 👉

The Cowboy Marketer⁠

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